Thirty years ago, if you told a CFO that being the steward of their organization's data was a strategic responsibility, they might have found it difficult to imagine. Not so today. A single source of truth, enabled by robust data management and governance, remains a goal that most organizations strive for. But getting there is essential to building the foundation for forming and guiding smart business strategies.
To discuss how CFOs are progressing beyond financial gatekeepers to data stewards, our Katie Kuehner-Hebert joins Aaron Levine, CFO of Toronto-based FP&A platform company Prophix. I spoke to him. As a finance executive at a high-tech company for 10 years, Levine has seen firsthand how important data accuracy and integrity are to modern businesses.
You have held several CFO positions. How has your experience influenced your approach to addressing the needs of today's finance teams?
Early in my career, I faced a common challenge faced by many finance professionals. It's an overwhelming amount of data, error-prone manual processes, and constant pressure to deliver accurate financial reports under tight deadlines. One of the key lessons I learned was the importance of leveraging technology to streamline financial processes as much as possible. Early in my career, I saw how manual data entry and disjointed systems led to inefficiencies and errors.
Why is it essential for CFOs to be data stewards?
As data stewards, CFOs play a critical role in shaping and guiding an organization's business strategy. We are responsible for ensuring the completeness, accuracy and accessibility of financial data. That's why I advocate for robust data governance practices to help CFOs establish a single source of truth within their organizations. This enables better decision-making and strategic planning, and improves the CFO's financial insights as a trusted source for other executives. I've seen the ability to effectively manage and interpret data become a key differentiator for many successful CFOs.
The CFO-CEO relationship is built on trust. How does a new CFO start building trust with the CEO, and what role does data play in that?
It starts with fostering a culture of honesty and openness, where clear and honest communication from both sides is prioritized. CFOs should be proactive in sharing positive news and potential challenges to provide a candid view of the organization's financial health. Regular updates on financial performance, risks, and strategic opportunities help keep CEOs informed and engaged, demonstrating their credibility and forward-thinking approach.
It's also important for CFOs to leverage their unique perspective on the organization's data. This advantage allows CFOs to provide valuable insights that guide decision-making, drive business success, and demonstrate that financial leaders are trusted advisors.
Accounting and finance professionals are becoming increasingly scarce. How do I recruit and retain talent for my company's finance department?
We certainly recognize that there are challenges in recruiting and retaining finance professionals, a situation exacerbated by factors such as an aging workforce and fewer students pursuing accounting degrees. To combat this, we focus on fostering a culture of continuous learning, offering flexible working arrangements, and valuing professional development.
Some of my favorite employee benefits that I recommend all companies take advantage of are known as Fixers: unlimited training coverage, the CPA Education Success Program, and an optional week of personal growth. vacation, and the Wheel of Success leadership development program. We made this provision in recognition that the next generation of finance leaders aspire to move beyond their day-to-day routine tasks and into positions where they provide tangible value to their organizations. I'm doing it.
